Singapore’s labour market showed resilience in the second quarter of 2025, with total employment rising by 8,400, according to advance estimates from the Ministry of Manpower. This growth, however, marks a slowdown compared to the 11,300 increase seen in the same period last year. The rise in employment was driven by gains among both residents and non-residents, although outward-oriented sectors like Professional Services and Information & Communications continued to face challenges.
The report highlights that resident employment saw notable increases in Financial Services and Health & Social Services. Conversely, sectors such as Retail Trade experienced declines as employers adjusted post-seasonal hiring from the previous quarter. Non-resident employment growth was primarily supported by Work Permit Holders in the Construction sector.
Unemployment rates for residents and citizens rose slightly in June 2025, reaching 2.9% and 3.0% respectively, returning to levels observed in March. Despite this uptick, the rates remain within the non-recessionary range. Retrenchments remained stable at 3,500, with business reorganisation cited as the primary reason.
Looking ahead, the Ministry of Manpower anticipates that employment will continue to grow, albeit at a more moderate pace than in 2024. The global economic uncertainty is expected to impact hiring and wage growth, particularly in outward-oriented sectors. The Labour Market Report for Q2 2025, due in mid-September, will provide further details on employment trends and sectoral data.
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